Corn Pleads Guilty to Fraud, Tax Charges

A businessman charged with concealing profits from the sale of fuel oil products obtained from Navy ships that his firms had contracted to clean pleaded guilty Tuesday to three federal felony counts of conspiracy to defraud the government and income tax evasion.

Curtis Jerome Corn, 43, faces up to 15 years in prison when he is sentenced Sept. 23 by U.S. District Judge Earl B. Gilliam.

Federal prosecutors will recommend six months in jail, six months in a halfway treatment house, a fine of more than $600,000 and five years’ probation, Special Assistant U.S. Atty. Judith Hayes said in court.

Corn also will be liable for any taxes that the Internal Revenue Service may levy, Hayes said, adding that the amount could reach $2 million.

Corn is the former owner of Allied Tank Cleaning and Trans Ambient Corp. and a secret half owner of Commercial Cleaning Corp.

He was indicted last year on 23 counts of tax evasion, mail fraud, conspiracy and filing false claims.

Corn admitted that he created false records and billings for his firms that showed work done on Navy ships. The inflated billings increased Corn’s expenses, thereby reducing his federal income tax obligations.

Corn has since filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code.